310chapter16m8

The espresso bar the espresso bar 1 costs 140000 and

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Unformatted text preview: n its restaurant. The espresso bar: The espresso bar: 1. Costs $140,000 and has a 10-year life. 1. Costs $140,000 and has a 10-year life. 2. Will generate net annual cash inflows of 2. Will generate net annual cash inflows of $35,000. $35,000. Management requires a payback period of 5 Management requires a payback period of 5 years or less on all investments. years or less on all investments. What is the payback period for the What is the payback period for the espresso bar? espresso bar? Chapter 16 Module 8: Payback Period Payback period = Initial investment Net annual cash inflow Payback period = $140,000 $35,000 $35,000 Payback perio...
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